The Low Volatility Income Strategy (“LVIS”) seeks superior returns by trading global indices that exhibit great volume and liquidity. Options are utilized extensively in the strategy, together with futures to form spreads, and as stand-alone trades known as “naked options.” LVIS both buys and sells puts, calls, and futures contracts simultaneously, depending on the bias of the market. Normally, buying of an option is meant to cover a position in case of a sharp movement in the underlying index contract. Various time frames are utilized, with most positions initiated three to six months from option expiration. LVIS may hold a position until expiration in certain circumstances, or roll into new time frames, though most options are covered or offset at 15% to 25% of value in an effort to mitigate risk. Margin usage will typically be approximately 25%, but could be higher or lower depending on market conditions.

Performance